Key Insights

• Dongfeng Motor Group's Annual General Meeting to take place on 21st of June
• CEO Qing Yang's total compensation includes salary of CN¥240.0k
• Total compensation is 70% below industry average
• Dongfeng Motor Group's three-year loss to shareholders was 60% while its EPS was down 49% over the past three years

The underwhelming performance at Dongfeng Motor Group Company Limited (HKG:489) recently has probably not pleased shareholders. The next AGM coming up on 21st of June will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

Comparing Dongfeng Motor Group Company Limited's CEO Compensation With The Industry

Our data indicates that Dongfeng Motor Group Company Limited has a market capitalization of HK$19b, and total annual CEO compensation was reported as CN¥1.0m for the year to December 2023. That's a notable decrease of 28% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥240k.

On comparing similar companies from the Hong Kong Auto industry with market caps ranging from HK$16b to HK$50b, we found that the median CEO total compensation was CN¥3.4m. That is to say, Qing Yang is paid under the industry median.

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Dongfeng Motor Group pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Dongfeng Motor Group Company Limited's Growth Numbers

Dongfeng Motor Group Company Limited has reduced its earnings per share by 49% a year over the last three years. It achieved revenue growth of 7.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Dongfeng Motor Group Company Limited Been A Good Investment?

The return of -60% over three years would not have pleased Dongfeng Motor Group Company Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

So you may want to check if insiders are buying Dongfeng Motor Group shares with their own money (free access).

Important note: Dongfeng Motor Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com